5Responsible Restructuring—Alternative Strategies49
Many companies, when faced with competitive pressures, have found creative alternatives to downsizing their workforces.
CHARLES SCHWAB & COMPANY
Strategy: Use downsizing as a last resort; at the same time, reinvent your business.
At the end of the second quarter of 2001, Schwab’s commission revenues were off 57 percent from their peak 15 months earlier. Overall revenue was down 38 percent, losses totaled $19 million (U.S.), and the stock had dropped 75 percent from its high. Something had to be done. How did the company respond? It took five steps before finally cutting staff.1
- When Schwab saw business begin to deteriorate the year before, it put projects on hold and cut back on such expenses ...